British Chancellor of the Exchequer Jeremy Hunt yesterday ripped up what was left of British Prime Minister Liz Truss’ controversial economic program, scrapping tax cuts and removing support for household energy bills in an effort to restore order to UK public finances.
After the backlash against Truss’ plan pushed up borrowing costs for the UK government, the package of ￡32 billion (US$36.2 billion) is less than half of what economists say the government might need to put government debt on a stable trajectory after soaring inflation and sputtering growth gutted tax revenue.
Together with earlier U-turns, the decisions reverse almost all of the ￡45 billion in tax cuts and giveaways Truss announced last month, raising questions about whether she can survive in office.
Photo: Reuters
The only major changes left from that announcement are those that are already part way through legislation, on national insurance contributions and stamp duty. Hunt signaled he was likely to make more severe spending cuts in the weeks ahead.
“There will be more difficult decisions, I’m afraid, on both tax and spending as we deliver our commitment to get debt falling as a share of the economy over the medium term,” Hunt said, adding that the priority would be on protecting “the most vulnerable.”
UK government bonds and the pound surged, with the yield on 30-year gilts falling as much as 44 basis points at one point.
That would be second-biggest daily drop on record if the debt were to close at that level.
Truss’ energy support scheme has also been curtailed. The current price freeze, capping the average bill at ￡2,500 a year for two years, would be reviewed in April, when it would be redesigned so that it is more targeted at vulnerable households and would “better incentivize energy efficiency.”
Hunt was to give further details to the British House of Commons at 3:30pm yesterday. He also intends to deliver a full fiscal plan on Oct. 31.
POLITICAL AGENDA: Beijing’s cross-strait Mid-Autumn Festival events are part of a ‘cultural united front’ aimed at promoting unification with Taiwan, academics said Local authorities in China have been inviting Taiwanese to participate in cross-strait Mid-Autumn Festival celebrations centered around ideals of “family and nation,” a move Taiwanese academics said politicizes the holiday to promote the idea of “one family” across the Taiwan Strait. Sources said that China’s Fujian Provincial Government is organizing about 20 cross-strait-themed events in cities including Quanzhou, Nanping, Sanming and Zhangzhou. In Zhangzhou, a festival scheduled for Wednesday is to showcase Minnan-language songs and budaixi (布袋戲) glove puppetry to highlight cultural similarities between Taiwan and the region. Elsewhere, Jiangsu Province is hosting more than 10 similar celebrations in Taizhou, Changzhou, Suzhou,
The Republic of China (ROC) is celebrating its 114th Double Ten National Day today, featuring military parades and a variety of performances and speeches in front of the Presidential Office in Taipei. The Taiwan Taiko Association opened the celebrations with a 100-drummer performance, including young percussionists. As per tradition, an air force Mirage 2000 fighter jet flew over the Presidential Office as a part of the performance. The Honor Guards of the ROC and its marching band also heralded in a military parade. Students from Taichung's Shin Min High School then followed with a colorful performance using floral imagery to represent Taiwan's alternate name
COGNITIVE WARFARE: Chinese fishing boats transmitting fake identification signals are meant to test Taiwan’s responses to different kinds of perceived incursions, a report said Chinese vessels are transmitting fake signals in Taiwan’s waters as a form of cognitive warfare, testing Taipei’s responses to various types of incursions, a report by the Institute for the Study of War said on Friday. Several Chinese fishing vessels transmitted fake automatic identification system (AIS) signals in Taiwan’s waters last month, with one mimicking a Russian warship and another impersonating a Chinese law enforcement vessel, the report said. Citing data from Starboard Maritime Intelligence, the report said that throughout August and last month, the Chinese fishing boat Minshiyu 06718 (閩獅漁06718) sailed through the Taiwan Strait while intermittently transmitting its own AIS
CHINESE INFILTRATION: Medical logistics is a lifeline during wartime and the reported CCP links of a major logistics company present a national security threat, an expert said The government would bolster its security check system to prevent China from infiltrating the nation’s medical cold chain, a national security official said yesterday. The official, who wished to stay anonymous, made the remarks after the Chinese-language magazine Mirror Media (鏡周刊) reported that Pharma Logistics (嘉里醫藥物流) is in charge of the medical logistics of about half of the nation’s major hospitals, including National Taiwan University Hospital and Taipei Veterans General Hospital. The company’s parent, Kerry TJ Logistics Co (嘉里大榮物流), is associated with the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and the Chinese People’s Liberation Army (PLA), the
RSS